On wings of leather

Updated: 2012-11-30 17:35

By Diao Ying (China Daily)

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Ettinger, who inherited his business from his father, has made the family brand more international. The company entered South Korea and Japan under his management in the 1980s. The situation of China was very different then, and it was only in recent years that his business gaze fell on it.

On wings of leather

Robert Ettinger, managing director of Ettinger, says he is going through the process of gaining an understanding of Chinese culture and how to do business in the country.[Photo/China Daily] 

Each market has its own difficulties and characteristics, he says, and he is going through the process of gaining an understanding of Chinese culture and how to do business in the country. He has read a lot about China, and books such as The End of Cheap China, by Shaun Rein, and What Chinese Want, by Tom Doctoroff, lie on his desk. Of course, he has also visited the country.

He is also swotting up by talking with others, including academics. Recently a group of graduate students from Southampton University made the case for Ettinger to enter the Chinese market the subject of a thesis. They studied the link between the brand and Chinese culture and an appropriate way of marketing Ettinger in the country, including trying to come up with a suitable Chinese name for the brand.

Robert Ettinger's mission to find out what makes the China market tick took him to Beijing recently, and he was pleasantly surprised, he says. Among the things that caught his eye were an efficient airport, street tidiness and the quality of services in hotels and restaurants.

The fact-finding trip also took him to malls to observe not only shops but also people. Such reconnaissance is critical in localizing products, he says. For example, in Japan he learned that unlike Europeans, men there do not put coins in their pockets, because traditional values deem money dirty. As a result, wallets that Ettinger markets in Japan have an extra compartment for coins. Purses are also bigger because Japanese tend to carry much more cash than do Europeans. These kinds of adjustments are among product refinements that would be made if the company decides to enter China.

The company's royal link is seen as a potential selling point in China, given that for many Chinese such links denote quality, wealth and status. For instance, Bentley, the luxury car manufacturer, made a special version of the car for the Chinese market in June during the diamond jubilee of the Queen's ascent to the thrown, and found it sold out within a short time.

Ettinger makes leather goods for members of the royal family, and in 1996 Prince Charles granted it royal warrants. Ettinger hopes that when the prince visits China next year, he will help bring British manufacturing and brands to the market.

Another opportunity is the relatively less competitive market for men's accessories. Rich men in China now carry products by Dunhill or Louis Vuitton as a status symbol, and they may eventually want something different.

But the pitfalls and challenges remain, including protecting intellectual property rights and marketing. As the European economic slowdown continues and Chinese consumers enjoy their rising spending power, Western brands are flocking to China. But how do you distinguish your product from the rest and communicate the message to customers while maintaining a low-key British luxury image?

The most difficult part is to find the right business partner in China to develop the brand, Ettinger says. Ideally it would be a company with experience in managing luxury brands, and which understands the Chinese market, local tastes and ideals, and the philosophy of a European luxury company such as Ettinger.

Ettinger believes the right partner does exist, but that it will take time and effort to connect with it. "When we find them, we will know," he says.

Against his uncertainties, he is sure his quest for knowledge will better prepare him for doing business in China if he decides to do so.

"You cannot be completely sure about anything. You can only be surer, as with life in general."

diaoying@chinadaily.com.cn

 

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